Real estate transactions are complex. They involve lots of money, several professions, negotiations, lenders, inspectors, etc… The last thing one of the folks involved in the process wants is to be liable for a big expense, or the cause of the transaction falling through.
Recently I had a discussion with a real estate agent, an attorney and a mortgage broker. It seems that one item seems to come up in real estate transactions, liability. We all had a spirited discussion and it came down to one thing…sort of.
The best way to help things go smoothly and incur the lowest risk to real estate professionals is to work with GOOD team mates. I’ll illustrate.
OK, a good real estate agent will work wit their client weather it be the buyer or the seller. They manage expectations and can help guide the client through the process. There is a lot of leg work here and many hours just to close one sale. A good REA will put in the effort and due his/her due diligence to help things go smoothly.
A good home inspector will provide a thorough inspection and detailed report to clearly define/describe the condition of the home. He/she will be insured. I am even insured to indemnify other real estate professionals who refer me through a rider on my E&O policy. The inspector should be a full time inspector, not a part timer. The inspector should be well educated. Perhaps most importantly, the home inspector should be a great communicator, able to describe the home, manage client expectations, and say it like it is. There’s no reason to be an alarmist! I’m not on some over drama reality show. All houses are imperfect and its OK to be that way.
A good lawyer will have experience in real estate law, and understand how purchase and sale agreements are formed. He/she will also know how to negotiate the title portions of the transaction, and clear up any issues that may arise. This person must also be thorough and timely. An error here will kill the deal.
A mortgage broker is key as well, a quality one will know about several options to help the buyer attain financing and how to do it. This person must have his/her paperwork in order so the buyer knows, in advance, what the budget can be.
If every person in the process is a professional in their specific areas, things are likely to go more smoothly. We all work as a team, in the best interest of the one client, who we cant forget in this scenario, is making a big investment and depends on all of us to help him or her out.
The bottom line is, I enjoy working with other professionals, its best for the client, and in the end best for the business too. I keep this in mind when my clients or other real estate pros ask for a referral. One last item, if you refer your client or team mate to someone who exceeds their expectations, it makes you shine as well.
Thanks for reading.
Mike Auger (401) 578-4878